Diageo gains control of USL

To acquire this 26 per cent stake, Diageo had to spend Rs.11,448.90 crore.

In its second attempt, Diageo Plc, the world’s largest spirits company, has managed to take control of United Spirits Ltd. (USL), India’s largest spirits company after successful closure of the latest open offer.

Diageo said through its wholly-owned subsidiary Relay BV it had accepted the tender of 37.79 million shares in USL at a price of Rs.3,030 a share under the open offer announced on April 15.

The shares tendered and accepted by Diageo are in the process of being transferred to Relay BV and represent 26 per cent of USL’s issued share capital.

To acquire this 26 per cent stake, Diageo had to spend Rs.11,448.90 crore.

Earlier, it had acquired 28.78 per cent in USL for Rs.6,574.2 crore.

In all, Diageo will have a total interest of 54.78 per cent in USL acquired for a total consideration of Rs.18,023.10 crore. Diageo expects to fully consolidate the results of USL from July 2.